HC Deb 12 March 1986 vol 93 cc931-2
14. Mr. Kenneth Carlisle

asked the Secretary of State for Trade and Industry what financial assistance the Government are providing to the electronics industry for capital investment and product development in the current financial year.

Mr. Butcher

The Department of Trade and Industry's support for research, development and production in the United Kingdom electronics industry during the financial year to date is about £130 million.

Mr. Carlisle

Does my hon. Friend agree that we have the balance right? Is he aware that it is rumoured that some £500 million of support is being asked for for the development of the wing of the new European airbus, but that the electronics industry, which is vital to a far wider range of businesses, is lagging behind? Will he consider a spread of support to industries in technology so that we can be certain to be at the forefront of the electronics industry?

Mr. Butcher

There are two separate heads of account for examining launch aid for projects in the aerospace industry, and the support for innovation account is the most relevant to this question. I am content that we have the balance right in terms of DTI spend when we bear in mind that support for innovation was running at roughly £90 million in 1979 and that it is running at roughly £230 million now.

Mr. Dalyell

How do the Government think that the British electronics industry will benefit from the American strategic defence initiative research'? Before my Consolidated Fund Bill debate at 2.30 on Friday morning, may we know from the DTI whether it was consulted about the visit from the United States of Mr. Clarence Robinson?

Mr. Butcher

On the latter part of the hon. Gentleman's question, I refer him to the reply that my right hon. Friend the Secretary of State for Defence gave yesterday in the House. As for SDI, there are enabling technologies, which it is right that we should be involved in. The hon. Gentleman will know of one technology which is close to his area of interest at Heriot-Watt university—light-powered computers. As this is leading edge developmental work, it is right that we should consider the options available to us.

Mr. Peter Bruinvels

Is my hon. Friend aware that both of the electronics companies in my constituency welcome any subsidy, but it is not helpful to them if business rates are now to rise by 80 per cent.? Is there any way in which the subsidies can be reconsidered and pressure put on local authorities to stop slamming the businesses that are providing jobs in the electronics industry in Leicester?

Mr. Butcher

Local authorities which argue that they want a boost in new technologies should give companies a welcome if it is inward investment, or support them on the ground by doing their best, in the interests of job creation and preservation, to keep rate increases down to the absolute minimum.

Mr. Geoffrey Robinson

Is the Minister aware that he is appallingly complacent about the level of Government support for the microelectronics support industry? Is he further aware that since 1981 our level of support has increased only very marginally and that we now have a situation in which France is spending five times as much and Germany nearly twice as much as we are by way of Government support for the microelectronics industry? Does he not find this situation, in which we have a large and growing deficit on information technology, very alarming?

Mr. Butcher

The British information technology industry has a number of key strengths, which this Government are anxious to support. Regarding the level of support, we have not been tardy in coming forward with these programmes. It is significant that this is the first Administration to have created the post of Minister for Information Technology. It is this Administration who have shifted their support towards the new technologies, not only in proportionate terms, but in cash terms.